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Weekly Market Summary

Jun 12 to Jun 16, 2023

View Current Performance

Extra Credit*

  • The last time yields for investment-grade corporate bonds were at current levels, investors were paying 10.1% more for the yield they are now receiving, and bonds were trading at a premium. Currently, investment-grade corporate bonds carry a yield of 5.39% and have an average price of $90.92.
  • When high-yield bond yields have historically had a yield within one standard deviation of the long-term average yield of 9.14%, the asset class has carried an average price of $94.19 (this includes the early 90s, 2000-2002, and 2008).
  • Bank-loan new issuance for June is off to a slow start, as the asset class has seen $13.5 billion issue so far in June. Last June, loans saw $44.3 billion for the month.
  • The trailing 12-month default  rates for high-yield bonds and bank loans, excluding distressed exchanges, finished May at 2.41% and 1.49%, up from 2.37% and 1.42, respectively, from April.

Sources: Bloomberg and Morningstar LSTA as of 6/12/23.

Yield as of:
Jun 16, 2023
High-Yield Bonds
Bank-Loans
Investment-Grade Corporates
Last Week
8.53%
11.02%
5.37%
Prior Week
8.57%
11.16%
5.39%
Start of the Year
8.96%
10.69%
5.34%
Option Adjusted Spread as of:
Jun 16, 2023
High-Yield Bonds
Bank-Loans
Investment-Grade Corporates
Last Week
401 bps
551 bps
121bps
Prior Week
416 bps
562 bps
127 bps
Start of the Year
469 bps
592 bps
121 bps
Prices as of:
Jun 16, 2023
High-Yield Bonds
Bank-Loans
Investment-Grade Corporates
Last Week
$89.04
$93.18
$90.82
Prior Week
$88.71
$92.83
$90.45
Start of the Year
$86.22
$91.89
$89.37

*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.

Past performance does not guarantee future results. Index performance is not indicative of fund performance. Indexes are unmanaged and it is not possible to invest directly in an index.

Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from AristotleFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.

Investing involves risk. Principal loss is possible.

Foreside Financial Services, LLC, distributor.

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